Ex-New Carlisle clerk pleads guilty

Audit found $80,000 missing from town coffers.

Audit found $80,000 missing from town coffers.

July 19, 2008|By MARTI GOODLAD HELINE Tribune Staff Writer

SOUTH BEND -- Former New Carlisle Clerk-Treasurer Cathy "Katie" Keck has pleaded guilty to three felonies and a misdemeanor related to her theft of town money. Keck, who served four years in office, resigned in October, shortly before she was expected to be re-elected to another term. Her resignation came after the Indiana State Police seized town records to investigate reports of missing money. After a police investigation of several months and a state Board of Accounts audit, about $80,000 was reported to be missing or unaccounted for. In April, three felony charges of theft and a misdemeanor count of official misconduct were filed against Keck, and those are the charges she admitted to Thursday. "She cooperated completely with the investigation; she was remorseful and she made full restitution," Keck's attorney, David Keckley, said Friday. Shortly before the criminal charges were filed, Keck, with the assistance of others, made restitution to the town of the $80,000, court records show. There was no indication during her guilty plea of why the money was taken. Keckley said he expects it to be addressed in his client's pre-sentence report but that it was not related to a gambling or a substance abuse problem or anything like that. Previously, Keck admitted to state police she took the money for personal use. She obtained the money by writing checks to herself or by helping herself to money in the town's cash drawer, according to police. Cash came from New Carlisle residents who paid their utility bills at the Town Hall. The three felony charges accused her of writing a check for $1,137 in April 2007, for $3,589 in July 2007 and $2,789 in September. The official misconduct charge accused her of violating the trust given her in her official capacity. Keckley said the prosecution has indicated it will not oppose misdemeanor sentencing for Keck. The plea agreement states the prosecutor agrees she qualifies to have the Class D felonies treated as misdemeanors for sentencing. Judge Roland Chamblee Jr. set sentencing Sept. 5. Keck, who remains free on bond, would then face up to a year in jail on each count and a fine up to $1,000. Otherwise, she would face up to three years in prison and fines up to $10,000 on each of the three theft charges if treated as a felonies. The investigation began after employees of Keck's office reported irregularities to Town Marshal Larry Brown, who contacted state police. In May, meanwhile, Brown was placed on paid administrative leave while state police conduct an investigation into allegations against him. No details of those allegations have been made public. Staff writer Marti Goodlad Heline: mheline@sbtinfo.com (574) 235-6327